Wednesday, October 11, 2006

Newton's Laws

The first law states that the bodies remain at rest or in uniform motion untill and unless any external force is applied to it. Professor Aswath Damodaran of the Stern School of Business at NYU has different opinions altogether. According to him momentum shopping in stocks is much more riskier. He explains "Momentum stocks have an average beta almost twice that of the rest of the market ... and are much more volatile." In 1990's stockholder believed in this momemtum, which was like having a lucky charm etc. The consistent, sustained growth was considered to last uptill eternity. But the times are changing, with people realizing the concept of life-cycle in industry as well as companies.

Coming back to Newton, the second law states that the force needed to change the state of rest or of uniform motion, is equal to the rate of change of momentum. In these term I guess the news and all are like blows to the change in momentum.

In terms of acquisitions, following the same logic as buying of stock.( For the newcomers on the train, whether you buy companies or stocks, your objective is to buy underpriced stock with high intrinsic values and higher short term return..mostly) .

Tuesday, October 10, 2006

The M&A in death!

SCI - corp is a pioneer in consolidation of Funeral Services through a series of acquisitions. Although the funeral Service business looks very local in nature, this company, at the end of its acqusition phase, where synergies just equalled the premium paid, started to make international acquisitions. It made acquisitions in Australia(where the incineration was more common), France (where cost of funeral services was fixed) and Britain. But the question is were they successful?

The IBy League is BORN TODAY!



A student of Baruch College, New York City, proclaims and dedicates this league for the extraordinary professionals in and around the North-East region, indulged in the business of making businesses work . With an aim of putting in insider information on the realities of the business "from the trenches" accesible to everybody, this blog aims at individuals coming from strong diverse backgrounds like engineering(non-IT), pharmacy, psychlogy.

The site would help these people to apply the skills they have learned to life. Since this site aims to attract traffic from employers as well, so healthy and competitive inputs would result in a general concept of "all boats rise". Also, the critical understanding should be reflected in words as few as possible..
More blogs about investment banking.

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